From January 1, 2000 to December 31, 2000, the Pentagon reported to Congress proposed government-to-government conventional arms transfer agreements with 25 countries worth a minimum of $11.6 billion.1

Under the 1976 Arms Export Control Act, Congress must be notified of any proposed sale of "major defense equipment," as defined on the U.S. Munitions List, that equals or exceeds $14 million; defense articles and services that are not defined as "major defense equipment" that total $50 million or more; and construction or design services amounting to or surpassing $200 million.2 Once notified, Congress has 30 calendar days (15 in the case of NATO members, Australia, Japan, and New Zealand) to block a sale by voting a joint resolution of disapproval, though it has never exercised this authority. The United States conducts government-to-government transfers through the Defense Department's Foreign Military Sales (FMS) program. Not all notified sales result in final transactions.

The 2000 total is significantly less than the $20.78 billion in arms sales to 19 countries proposed in 1999, but that figure was bolstered by several countries seeking advanced aircraft, as well as a possible $4.2 billion deal with South Korea for advanced versions of the Patriot anti-missile system.

Saudi Arabia led all prospective buyers in 2000 with $3.18 billion in requested arms, and Taiwan ranked second with proposed buys totaling $1.87 billion. Together, the top five prospective weapons buyers—Saudi Arabia, Taiwan, Israel ($1.6 billion), Egypt ($1.17 billion), and Italy ($915 million)—accounted for 75 percent of the value of the proposed arms deals. The Near East led all regions in prospective buys, totaling approximately $6.2 billion in possible deals. This total does not include the United Arab Emirates' estimated $6.4 billion contract signed on March 5, 2000 with Lockheed Martin for 80 F-16C/D fighter aircraft, which was concluded as a commercial deal between the company and the foreign government and not as a sale by the U.S. government through the Pentagon. Seven countries in the Asia-Pacific region accounted for $2.8 billion of the proposed sales, while a dozen European countries sought weapons valued at $2.6 billion.

The Top 3 Recipients of Proposed Arms DealsFrom January 1, 2000 to December 31, 2000

This register does not necessarily reflect finalized transactions and therefore is most useful in demonstrating trends in the type of weapons systems the United States is willing to sell, to whom it will sell, and the costs involved.

NOTES:

1. The proposed German buy of HARM missiles could total $50 million or $250 million depending on whether Germany acquires the B or C model. In addition, no value or quantity was declared for Australia's possible purchase of AIM-120 Advanced Medium Range Air-to-Air Missiles, but notifications are required for sales equaling or exceeding $14 million. For the purpose of this fact sheet, the minimum values of $50 million for the proposed German missile buy and $14 million for the possible Australian acquisition were assumed in calculating the total value of proposed U.S. FMS sales during the period.

2. The president is also required to report to Congress any commercial sales of "major defense equipment" that amount to $14 million or more, defense articles and services that equal or exceed $50 million, and any items defined as "significant military equipment." Like FMS sales, Congress can block the sale with a joint resolution of disapproval within 30 calendar days of notification (15 in the case of NATO members, Australia, Japan, and New Zealand).

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